The BSE Sensex and NSE Nifty surged over a percentage point on Monday on hopes that the Reserve Bank of India (RBI) will go for a rate cut next month after the government slashed small savings scheme rate last week. Sensex closed 332.63 points up at 25,285, while Nifty 50 settled 99.10 points up at 7,704.25.
In the 50-share index, Ambuja Cements, UltraTech Cement, Bosch, HUL and State Bank of India gained between 3 per cent and 4.42 per cent. On the other hand, Asian Paints, Lupin, BHEL, Coal India and GAIL India slid between 0.48 per cent and 2.27 per cent.
Sectorwise, the BSE Capital Goods index surged the most — 2.01 per cent, followed by BSE Consumer Durables (up 1.80 per cent), BSE Realty (up 1.78 per cent), BSE Bankex (up 1.70 per cent) and BSE FMCG (up 1.65 per cent). Rest all other indices also ended in green.
S&P BSE Sensex on March 21, 2016
Dipen Shah, senior vice-president and head of private client group research, Kotak Securities, said, “Nifty closed above the 7,700 mark for the first time since early January. The rise in markets came on the back of supportive global cues and increased expectations of a rate cut by the RBI. Going ahead, RBI rate cut, quarterly results and legislative action in the second half of the budget session will be the important triggers for the markets, apart from the global cues.”
Among day’s major market moving events, FIPB – the regulator for foreign investment, on Monday approved 15 FDI proposals including that of Nippon Life Insurance, Tata AIA and Aviva Life. The total FDI approved by the authority stood at Rs 7,262 crore. Further, the authority also referred the proposal of YES Bank to hike foreign investment to 74 per cent from the existing 41.87 per cent to the Cabinet Committee on Economic Affairs (CCEA). YES Bank shares closed 2.13 per cent up at Rs 831.55.
Shares of IDBI bank too remained in action after market reports that the government is looking to cut its stake in the bank and is trying to get atleast 2 large institutional investors to buy its stake in IDBI bank. IDBI Bank shares closd 4.54 per cent up at Rs 70.25. Hiren Dhakan, associate fund manager, Bonanza Portfolio, said, “Markets expect the move would transform the operations of the bank and would be similar to the case of its rival Axis Bank which was earlier UTI Bank.”
Shares of Aurobindo Pharma closed 3.06 per cent up after the pharma major received a nod from USFDA to manufacture the generic drug Naproxen Sodium tablets for treating osteoporosis.
Overall market breadth for the day remained positive and advances to declines ratio for Nifty stood at 40:10 for the day.
Asian equity markets ended mixed on Monday as a retreat in oil prices prompted investors to lock in some profits after three consecutive weeks of gains. Many market watchers are predicting a quiet week ahead in the absence of major economic data from the US and China, and with many markets off for Good Friday. However, Chinese shares rallied to extend gains for a seventh day after authorities signaled a loosening stance toward margin trading and cut borrowing costs for brokerages. Market in Japan was closed for a holiday.
Markets through the day
3.30 pm: Sensex closed 332.63 points up at 25,285, while Nifty 50 settled 99.10 points up at 7,704.25.
3.18 pm: Meanwhile, Nifty reclaims 7,700 mark. The index was trading 107.20 points up at 7,711.
3.02 pm: The 30-share benchmark Sensex was trading 308 points up at 25,261, while the 50-share index was trading 82 points up at 7,686. Rico Auto was trading 13.34 per cent up at Rs 36.10.
2.34 pm: Sensex was up 225.85 point at 25178.58, while Nifty 50 was trading 70.45 points up at 7,674.80. Shares of Dredging Corporation of India were trading 14.15 per cent up at Rs 369.40.
2.15 pm: European shares fell on Monday, as a decline in the share prices of major mining stocks and in French supermarket operator Casino weighed on the region’s stock markets. The pan-European FTSEurofirst 300 index and the euro zone’s blue-chip Euro STOXX 50 index were both down by 0.7 percent.
1.56 pm: Prestige Estate Projects shares were trading 9.61 per cent up at Rs 152.80. The company informed BSE that the board at its meeting held on March 19, 2016, has approved the payment of interim dividend at the rate of 12 per cent i.e. (Rs 1.2 per share) for the financial year 2015-16. Further, the said dividend will be paid on or before April 17, 2016. Sensex was up 168 points at 25121. Nifty was trading 48.15 points up at 7,652.
1.41 pm: Nifty was trading 30.25 points up at 7,634. In the 50-share index, Ambuja Cement, UltraTech Cement, ACC, Bharti Airtel and Bosch were up between 1.90 per cent and 3.70 per cent.
1.36 pm: Adani Enterprises’ subsidiary – Adani Green Energy (AGEL), has incorporated a wholly owned subsidiary (WOS) namely, Sami Solar (Gujarat) (SSGPL) on March 17, 2016. Adani Enterprises is the country’s largest coal importer-turned-domestic private mine developer-cum-operator (MDO). The company is truly a diversified asset backed commodities trader, sourcing, producing, marketing and transporting them across the globe. Shares of Adani Enterprises were trading 0.22 per cent down at Rs 68.40. Sensex was up 106.49 points at 25059.23.
12.55 pm: Sensex was up 134 points at 25,087. Apart from blue chips, broader indices too equally participated in the rally with both mid cap and small cap indices trading were up by 0.69 per cent and 0.85 per cent respectively. Meanwhile, jewellery stocks are trading higher after the 18-day long strike by jewellers ended on Saturday night.
12.43 pm: Persistent Systems shares were trading 9.66 per cent up at Rs 734.45. Persistent Systems shares surged as much as 18.96 per cent on Monday ahead of the company’s investor and analyst call which is scheduled later in the day. Traders believe Persistent Systems could provide optimistic business guidance for the next fiscal year ended March 2017. Company expects to garner additional 15-20 per cent revenue in FY2017. READ MORE
12.17 pm: Sensex was up 165 points at 25,117. PVR cinemas, the nation’s leading destination for all things movies, and Paytm, India’s largest mobile payments and commerce platform, have entered into a new strategic relationship that will bring PVR’s movie tickets to Paytm’s e-commerce platform as a part of its nationwide foray in the on-line movie ticket segment. In the first year of this relationship, PVR targets to sell tickets worth Rs 250- 300 crore on Paytm’s e-commerce platforms besides selling tickets from the box offices and other channels. Shares of PVR were trading 0.36 per cent up at Rs 712.60.
11.42 am: Skipper is aiming revenue of Rs 3,000 crore by 2018-19 on the back of initiatives taken by the government to give a boost to the sector with schemes like UDAY. Shares of Skipper were trading 0.43 per cent up at Rs 140.90.
11.22 am: Sensex ws trading 158.45 points up at 25,111.19, while NSE Nifty was trading 45.65 points up at 7,650. Meanwhile, Nikhil Kamath, co-founder and director, Zerodha said, “The recent market action, starting from budget day till Friday (18th March) has been very encouraging. This price action can be broken to parts. Part one, we saw the markets bounce from the budget day lows of 6800 and rally all the way to 7550. In the second part, we say the markets consolidated for about two week between 7400 to 7550. However, with Friday’s close of 7604, we get a sense that the market has broken out of this brief consolidation and is all set from another leg up. Given this background, we would advice traders to set up long trades at open tomorrow with 7500 as stoploss. Although the stoploss is 100 points below, given the positive sentiment, the long trade have a greater probability of success.”
10.47 am: Sensex was trading 186 points up at 25,138. Va Tech Wabag shares were trading 4.81 per cent up at Rs 533. The company has bagged record orders worth Rs 5,000 crore in 2015-16. This is the highest ever order intake clocked by the group in a single financial year.
Nifty was trading 54.50 points up at 7,658.
10.29 am: Nava Bharat Ventures has entered into an arrangement with Tata Power Trading for supply of power to Telangana State Power Distribution Companies (TSPCC/TSDISCOMS) back to back for the period from May 27, 2016 to May 25, 2017. Shares of Nava Bharat Ventures were trading 2.55 per cent up at Rs 164.80. Sensex was up 162 points at 25,115.
10 am: Infibeam IPo hits capital markets. Sensex was trading 136.77 points up at 25,089.51, while NSE Nifty was trading 39.05 points up at 7,643.40.
9.44 am: The Indian rupee rose 2 paise to 66.48 against the dollar at the Interbank Foreign Exchange market in early trade, extending its winning spell for the fourth straight day, on increased selling of the US currency by exporters and banks amid sustained foreign fund inflows. Sensex was trading 89.40 points up at 25,042.14, while NSE Nifty was trading 26.85 points up at 7,631.20.
9.37 am: Uflex was trading 1.46 per cent up at Rs 156.75. The company is eyeing 30 per cent revenue from export markets in the next three years. At present, exports account for 18-20 per cent of the total revenue of its packaging business. Packaging business accounts for 44 per cent of the total revenue of Uflex, which is also into production of chemicals, cylinders and holograms and engineering. The company exports products to over 140 countries from its manufacturing units in India, Poland, the US, Mexico, Dubai and Egypt. The packaging major has crossed the $1-billion revenue mark in India and wants to double its income to $2 billion in 4-5 years. The company is setting up an aseptic packaging plant for liquid packaging in Sanand, Gujarat with an investment of about Rs 580 crore in first phase and the total capacity will be 7 billion packs per annum.
9.16 am: Sensex was trading 104.78 points up at 25057.52. Nifty was up 20.70 points up at 7625.05.
9.15 am: The BSE Sensex opened 54.82 points, 0.22 per cent, up at 7619.20, while Nifty 50 index opened 14.85 points, or 0.20 per cent, up at 7619.20.
8.47 am: The BSE Sensex and NSE Nifty are likely to open lower on Monday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and mixed global markets. At 8.29 am (IST), SGX Nifty was trading 19 points, or 0.25 per cent, down at 7,593.50.
However, prospect of a lower interest rate regime has increased significantly with hopes of the Reserve Bank of India (RBI) cutting rates in its monetary policy review on April 5 may support markets during the day.
A brighter outlook for the US economy helped Wall Street, where the S&P 500 Index gained 0.44 per cent to close in the black on Friday.
Shares of Aurobindo Pharma and GMR will remain in in focus on Monday. Aurobindo Pharma has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Naproxen Sodium Tablets USP, 220 mg (OTC). This product is expected to be launched in Q1 FY16-17. The approved Abbreviated New Drug Application (ANDA) is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Aleve Tablets, of Bayer Healthcare LLC (Bayer).
Dabhol, GMR, GVK, Lanco and Gama are among those who have secured around 8 mmscmd of imported gas for running their stranded power projects, which will aid generation of 6.79 billion units electricity.
Some buzz can be seen in the gold and jewellary stocks too, as jewellers called off a 19-day strike late on Saturday after the government assured they will not be harassed by the excise department in collecting a new tax.
Back home, domestic equity benchmark indices staged a blockbuster performance on the last day of the week by vehemently rallying over a percentage points in the session, as overseas investors continued pumping money into the emerging markets following the dovish stance by global central banks. The BSE Sensex surged by 275.37 points or 1.12 per cent to 24,952.74, while the CNX Nifty rose 91.80 points or 1.22% to 7,604.35.
According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net buyers of Rs 806.54 crore in index futures and options segments, as per Friday’s data, March 18, 2016.
FIIs were net buyers of index futures to the tune of 490.91 crore and they bought index options worth Rs 315.63 crore. In the stock segment, FII’s were net sellers of stock futures worth Rs 171.06 crore, while they sold stock options worth Rs 96.37 crore.
The government on Friday slashed interest rates on small-savings schemes, including the Public Provident Fund and Kisan Vikas Patra in order to align these administered interest rates closer to the market rates.
(With agency inputs)